While volatile movements continue to occur in Bitcoin and Ethereum, three-month options contracts are about to expire.
Accordingly, BTC and ETH options worth $15.2 billion will expire tomorrow on Deribit, the world's leading cryptocurrency options exchange.
While Deribit data reveals that the $15 billion figure is one of the largest maturities in the history of the stock market, it also shows that most BTC and ETH options will end in profit on Friday, tomorrow.
While a large amount of options in BTC and ETH are expected to expire tomorrow, Deribit chief trading officer Luuk Strijers, speaking to Coindesk, said that this situation may cause pressure and high volatility on the BTC price.
“A large amount of options are expiring tomorrow and most of them will be in the money (ITM). This may cause upward pressure or volatility in the market.
Bitcoin options worth $3.9 billion, with a market cap of approximately $70,000, will expire. This represents 41% of the $9.5 billion of total three-month open interest due. Similarly, according to Deribit data, 15% of the three-month total open positions in ETH of $5.7 billion are about to expire.
These levels are higher than normal. The reason for this is, of course, the recent price increase. “The fact that most of their options expire in high profits could lead to potential upside pressure or volatility in the relevant asset.”
Deribit manager finally pointed out that the maximum loss points for the three-month maturity of BTC and ETH are $ 50,000 and $ 2,600, respectively, and said, “Although Bitcoin and Ethereum experienced post-maturity corrections during the last bull market, they are constantly moving towards the maximum loss points to maintain their rallies.” made short and low corrections.” said.
*This is not investment advice.